Cologne, Germany

Huge tax evasion scandal: German CEOs have been evading taxes for years by stashing money in accounts in Liechtenstein, police said this week. The Bundesnachrichtendienst, Germany’s equivalent of the FBI, said it paid some $8 million to an informant for a CD containing information from a Liechtenstein bank. The first head to roll was that of Deutsche Post chief executive Klaus Zumwinkel, whose home was searched last week as rapt Germans watched live on television. Zumwinkel quickly resigned. Police said raids on prominent individuals would continue for weeks. Liechtenstein, a tiny principality known as a tax haven, is furious at revelations that Germany has been spying on its banks. “Germany has clearly failed to understand how one behaves toward a friendly state,” said Crown Prince Alois.

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